Hello sir, please help me confirm the answer to this MCQ.
In the theory of constraints and throughput accounting, which of the following methods may be used to
elevate the performance of a binding constraint?
Method 1: Acquire more of the resource that is the binding constraint
Method 2: Improve the efficiency of usage of the resource that is the binding constraint
? Method 1 only
? Method 2 only
? Method 1 and Method 2
? Neither method would be effective
The answer given behind the kit is: Method 1 and Method 2
But sir, my confusion is, Isn't Method 2 a way of EXPLOITING THE BOTTLENECK RESOURCE and NOT ELEVATING It.
The technical article is very clear about the differences between these 2 steps.
Please help me understand the correct answer to this MCQ.
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THROUGHPUT ACCOUNTING
6y ago
6y ago#1The answer is correct (method 1 and method 2).
Elevating the performance simply means being able to increase the throughput for that constraint.
One way of doing it is to exploit the resource better (i.e. use the same amount of resource more efficiently). The other way if to acquire more of the resource.
Step 4 in the article does say that although initially Alex thought that the only way of elevating the performance was to buy more machines, but then realised that it could be elevated by making the existing machines more efficient.
Greetings sir
What does this lines mean=
1=it’s focuses on identifying stages of congestion in a process when the production arrives more quickly than the next stage can handle.
2=it is based on the concept that Organisation manage three key factors -throughput, operating expenses and inventory..
Point 2 i understood that throughtput should be higher and operating expenses should be reduced in a Organisation but why inventory is key factor in an org.?
6y ago#31. This is identifying the bottleneck. If one process can produce faster than the next process then it has to slow down.
2. Inventory of materials should be kept as low as possible (ideally zero) so that the material used is the same as the material being bought.
God bless u always..
Thank so much
6y ago#5You are welcome :-)
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